I have had several enquiries from NZ based Kiwis looking to purchase a property in Australia. They may be wanting to secure a home before they make the move across the ditch, or NZ based parents helping their Aussie based kids.
Foreign Acquirer Duty (FAD)
FAD is a tax levied on non-residents buying property in Australia. If you are a NZ citizen living in NZ, you will be charged FAD. The tax varies by state: QLD 8%, NSW 9%, WA 7%, Tassie 8%, SA 7%, NT 0%.
You will also pay Stamp Duty. For example, buying a property in QLD for $1m you will pay $115,000 in stamp duty and FAD combined. These taxes are enough to put off most Kiwis.
Another consideration is getting a loan. As a Kiwi living in NZ you are regarded as an expat. There are very few Aussie lenders that will entertain an expat loan and the process is complex and onerous.
How do you get around these hurdles?
Reside in Australia. As soon as you step off the plane you are issued a subclass 444 visa, making you “resident”. However, you must continue to prove that you are living in Oz and not just popping over to beat the system.